A few notes:
You do NOT need to run Mac Internet Sharing.
You may need to run Tunnelblick to have it in the background, but don't use Tunnelblick's icon to connect. Run the azilink.sh script to do the actual connection.
Also, the azilink script *should* set your DNS settings appropriately. If not, you can try poking around the script's settings to use a different name server (by default it uses the phone's DNS settings, i think).
I'm not sure about Leopard, but you don't need Tuntap on Snow Leopard - just Tunnelblick running.
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